• Net Asset Value up 2.3% to USD 199 million or USD 0.80 per share
  • LTV down to 49.4% following sale of the Remraam residential assets post-period

Dubai, United Arab Emirates: ENBD REIT (CEIC) PLC (“ENBD REIT”), the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, announces its financial results for the first quarter ended 30th June 2024. ENBD REIT's Net Asset Value (“NAV”) stood at USD 199 million or USD 0.80 per share, compared to USD 194.7 million for the previous quarter, reflecting the positive portfolio performance with gross income rising 13.7% Year-on-Year (“YoY”) to USD 9.4 million.

The total value of ENBD REIT’s property portfolio increased by 0.8% to USD 387 million Quarter-on- Quarter (“QoQ”), benefiting from the proactive asset management, portfolio rebalancing, and driving operational efficiency. Overall occupancy was slightly lower at 87% mainly due to a temporary vacancy at The Edge with the space already relet on a longer lease period at above market rates. The portfolio’s Weighted Average Unexpired Lease Term or WAULT stood at 3.66 years.

Samir Kazi, Head of Real Estate at Emirates NBD Asset Management and CEO of ENBD REIT, commented: “We are pleased with the performance of the portfolio with good progress being made on the turnaround journey. Our focus remains on driving income and occupancy levels while managing our costs and strengthening our financial position to drive sustainable long-term growth. I am confident in our ability to deliver further improvements over the coming quarters.”

Operating expenses are up 15% same quarter last year due to the direct expenses under utilities, reinstatement (reimbursed from tenants) and community charges. Fund expenses also rose mainly on account of increase in provision which is expected to be released shortly. Finance costs were up 3.3% to USD 3.7 million QoQ as interest rates remain high during the period. As a result, Funds From Operations (“FFO”) was down by 40% QoQ to USD 1.35 million, mainly due to higher provision as explained above.

Post-period end, in line with the turnaround strategy aimed at portfolio optimization and dividend growth, ENBD REIT successfully completed the divestment of the Remraam residential assets. Proceeds from the sale were deployed to reduce debt, with the LTV ratio dropping to 49.4%.

As part of the turnaround journey, ENBD REIT continues to explore opportunities for strategic investments and portfolio rebalancing. Despite challenges posed by a high interest rate environment and pricing expectations, ENBD REIT maintains its commitment to delivering value to its investors through proactive asset management and prudent financial practices, driving long-term growth and sustainability.

For more information:
ENBD REIT (Investor Relations)
Mona Zahooruddin                                                                          ENBDREITIR@EmiratesNBD.com                                               
+971 (0) 4 509 3034

Company Secretary
Akeela Bharuchi                                                                               cosecme@equiomgroup.com

Equiom Corporate Services                                                         
+971 (0) 4 446 3900

Instinctif Partners (Public Relations)
Arief Zulkifli                                                                                        Arief.Zulkifli@instinctif.com
+971 (0) 58 906 3431

ABOUT ENBD REIT

ENBD REIT (CEIC) PLC (“ENBD REIT”) is a Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager” - Regulated by the DFSA), listed on Nasdaq Dubai under ticker ENBDREIT. ENBD REIT is a closed-ended investment company that was incorporated by the Fund Manager to invest in a diversified Portfolio of Shari’a-compliant real estate assets in the UAE. ENBD REIT has an unlimited duration and was established in the DIFC by the Fund Manager on 18 July 2016 under the Companies Law with the name “Emirates Real Estate Fund Limited” and with registration number 2209. The Fund subsequently changed its name to “ENBD REIT (CEIC) Limited” and later ENBD REIT (CEIC) PLC in line with the new DIFC Companies Law. ENBD REIT is categorised under DFSA law and regulations as a Public Fund, a Domestic Fund, an Islamic Fund, a Property Fund and a Real Estate Investment Trust (REIT). ENBD REIT has been established with the main investment objective of generating income returns and capital appreciation from real estate assets. ENBD REIT plans to achieve its objectives through the following strategies: (i) prudent acquisitions with a focus on achieving diversification; and (ii) active asset management and enhancement. For more information, visit: www.enbdreit.com